What QE4 Means For You
by James Corbett
corbettreport.com
October 19, 2019
After years of denials by the Fed and its minions in the controlled corporate media, the Federal Reserve had to admit this week that it’s beginning its fourth round of so-called “quantitative easing” since the Lehman collapse and ensuing financial crisis over a decade ago (QE4).
. . . Well, sort of. They certainly aren’t calling it “quantitative easing.” Instead, as you might expect, they’re couching this new round of phony-baloney paper promise printing in the language of financial gobbledygook that’s guaranteed to get the public dozing off to sleep before they can finish the first paragraph. Observe the New York Fed’s press release on the subject:
“In light of recent and expected increases in the Federal Reserve’s non-reserve liabilities, the Federal Open Market Committee (FOMC) directed the Desk, effective October 15, 2019, to purchase Treasury bills at least into the second quarter of next year to maintain over time ample reserve balances at or above the level that prevailed in early September 2019. The Committee also directed the Desk to conduct term and overnight repurchase agreement operations (repos) at least through January of next year to ensure that the supply of reserves remains ample even during periods of sharp increases in non-reserve liabilities, and to mitigate the risk of money market pressures that could adversely affect policy zzzzzzzzzzzzz.”
See what I mean?
So what does this policy mean in plain English? Why is it being done now? And how will it impact you? Glad you asked!
For years now the Fed has been double dog pinky-swearing that the large-scale asset purchase shopping spree that it went on after the financial crisis of ’08 (“quantitative easing” or “QE”) is over. For exactly the same length of time, the lone voices of sanity in the economic wilderness have been assuring us that the Fed is lying and the next round of quantitative easing (QE4, for those keeping track at home) is just around the corner.
As we now know, the lying liars at the Fed were (GASP!) lying all along. Quantitative easing is not over—if it ever really stopped at all—it’s just undergoing a name change.
“This is not QE. In no sense is this QE,” insisted Fed Chair Jerome Powell this week at the exact same time that the Fed announced it was going to add hundreds of billions more to its QE-bloated balance sheets by purchasing more securities. Now, that kind of buying spree used to be the exact definition of “quantitative easing,” so I guess “not QE” is globalist-approved newspeak for “QE” in the same way that “literally” now means “figuratively.”
Whatever you want to call it, massive Fed intervention in the markets is back with a $161-billion-a-week vengeance, and needless to say it’s going to be exploding on the markets like an atom bomb.
Just ask the Dutch central bank, the De Nederlandsche Bank (DNB) who has posted a handy-dandy reminder on its website that “If the system collapses, the gold stock can serve as a basis to build it up again.”
Excuse me?
Yes, it seems that the DNB felt it necessary, in the midst of these tectonic financial events that we are witnessing—including not only the long-predicted reemergence of QE but the first institutional warnings of the next global recession—to remind us that gold will be quite useful in the event of an economic reset. For central banks, that is. Don’t you peons get any ideas in your head about stocking up yourself, lest you be labeled a “prepper” and promptly castigated from polite society.
But the DNB is not the only central bank that is stocking up on the shiny yellow metal. In fact, the central banks of China, Russia, Turkey and Qatar went on a gold buying frenzy in August, adding nearly 60 tons to their reserves that month alone. And, lest it be argued that this is a one-off occurrence, keep in mind that central bank gold holdings actually hit a half-century high last year with no signs of a sell-off in sight.
Nor is the DNB the only central bank warning about a coming economic reset. It was just two months ago, after all, that outgoing Bank of England governor Mark Carney warned that the current economic world order is coming to an end because, as Zero Hedge explains, “due to the dollar’s dominance of the global financial system, risks of a liquidity trap of ultra-low interest rates and weak growth are growing.” In other words, now that virtually everything of significance in the global economy is denominated in dollars, the banksters can’t get away with their ever-expanding credit bubble anymore. They need a new peg against which they can continue to devalue their fiat currencies. A peg like . . . gold?
No, of course not! A peg like Libra!
Yes, in just the past two months we’ve had one of the most powerful banksters in the entire global banking mafia arguing that Facebook’s Libra scamcoin may be the thing to carry us into the Brave New World Economic Order and another central bank warning of the global economic reset. It’s almost as if they’re prepping us for something. . . .
Unfortunately for Mark (both Carney and Zuckerberg) the wheels have fallen off the Libra scambus in recent days, with many of its major financial partners abandoning ship. But don’t worry, everyone, China has their own replacement: Yet another completely trackable, traceable and databasable scam digital currency trading on the cachet of cryptocurrency to complete The Bitcoin Psyop and mislead the public away from a central bank-less world straight into the maws of the GloboBanking Beast itself.
All of which leads us back to the same basic points that those lone voices in the economic wilderness have been making for years:
The global monetary and financial system as we know it is going to end; and,
The banksters are preparing for that end by stocking up on gold and preparing the future centrally-administered digital currency matrix.
So where does that leave us? Are we destined to forever have the banksters QE-driven, debt-filled Bubble of Damocles (to coin a term) hanging over our heads, just waiting for it to pop? When it does pop and the fiat paper promises that drive the global economy evaporate, will we be forced to simply accept whatever “solution” they propose?
Of course not. When and if QE4 leads to another financial crisis, we will merely be in the same situation that we’ve been in for years. This means that if we want to avoid falling into the banksters’ trap, we will have to find (or create) a way around their centralized fiat money game. I’ve written about how to escape the globalist system before. Many times, in fact. And those solutions remain relevant today.
But here’s a very simple dictum that people can start applying to their portfolio today to begin making a difference: Do as the banksters do, not as they say. They are saying that Libra will save us, but they are stocking up on gold. That’s got to be a clue.
But what do I know? I’m just one of those lone voices out there that would undoubtedly be laughed at were I to be invited on one of the MSM’s talking head shows. And we all know that the establishment talking heads always have the last laugh. Right?
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